Gold is currently trading at $1225/troy ounce, above its resistance around $1224 area and silver today has been testing 3 month high and looks very close to breaking above and move higher.
Both of them are indicating that further rise might be on card. Since gold and silver both have been taking cues from dollar strength, their rise indicates at further drop in Green buck.
Gold silver ratio, also known as mint ratio is close to breaking the low made in September last year. Mint ratio is inversely proportional to gold and silver prices more often than not. Mint ratio is at 67.18, up 0.3% today.
Moreover weaker than expected economic release has led cut off in speculative bets over dollar’s strength. Latest Cot report indicate that speculators have cut US dollar longs to lowest level since August last year.
First target for gold is coming around $1252, though $1236 – 1240 might pose challenges. As with silver initial target is around $18.5-19.
The material has been provided by InstaForex Company – www.instaforex.com